Final answer:
The basic formula for the price elasticity of demand is percentage change in price divided by percentage change in quantity demanded.
Step-by-step explanation:
The basic formula for the price elasticity of demand is:
D. Percentage change in price/percentage change in quantity demanded
The price elasticity of demand measures the responsiveness of the quantity demanded to a change in price. It is calculated by taking the percentage change in quantity demanded and dividing it by the percentage change in price. This formula helps us determine whether the demand for a product is elastic or inelastic.